tv On the Money CNBC April 30, 2016 5:30am-6:01am EDT
>> hi, everyone, welcome to "on the money" a meeting with berkshire hathaway is under way. keep it simple. how you can save for retirement. strategies that have go aheaded the world's greatest investors. the ceo of soul. what's it like to work for one and is he the world's greatest boss, too? >> the zika virus and your vacation plans, why the u.s. is spending billions to fight it and what it could mean for summer travel. believe it or not, hot for your pets. get a cure for what ails them s. it a good idea? >> he's running in the park again. >> "on the mon" starts right
no now. >> we begin with the zika virus. so the outbreak may be here in the middle of america in omaha, it's top of mind. it's in 66 countries, it's spreading. it can cause devastating birth desks. the virus is impacting tourism plans around the world. president obama is asking for almost $2 billion to fight it. that's our cover story. while the mosquito-borne disease is name for the zika forest. it is ground zero for the outbreak and brazil being the start of the summer olympics in three month, it could have an impact. it expects a tourism boost. here, zika may cause it to be 20%. if toll the zika could cost
latin america and the caribbean at least $3.5 billion this year. mostly from lost tourism from jamaica and aare you ba. dengue cost more than 8.5 billion. in the sars outbreak. chyna lost 2.5 billion in investment. the u.s. costs could surge, president obama has requested $1.9 billion from congress to battle zika. so where is that money being best to protect potential mothers and newborns, the chief of the health and facilities branch at the centers for disease control and prevention. he is a member of the zika response team. thank you for joining us this morning. >> you are most welcome. >> there are a lot of questions circulating about this right now. it comes down to two basic category, first, what do we know and more importantly what don't
we know? >> what we know is zika is generally a mild disease in adults. it causes fever, rash, red eyes, maybe some joint pain. however, for pregnant women, there are serious risks. we now know the zika virus disease causes microcephaly or severe brain anomaly. >> i think those who are pregnant have a lot of questions. if you are if that population what should you be doing right now to protect yourself? >> the best way to protect yourself is if you can avoid travel or residing if areas where there is ongoing zika virus transmission. if are you in an area where there is zika transmission, can you take steps to protect yourself against stick car, notably avoiding mosquitos and making sure your sex partner uses a condom. >> the mosquitos most responsible for transmitting
zika aren't here in the united states, but there are other mosquitos that transmit similar diseases, things like dengue virus. how likely is it there is an outbreak from the mosquito infection in the united states this summer? >> well, in the continental united states, you are correct, there are no cases of local transpigs from mosquito bites. however, if puerto rico, there are ongoing case of zika virus, in76. in terms of the mosquitos. the mosquitos that carry zika are in the parties of the united states, however, the virus is not here in the continental united states. >> we've heard from the head of the cdc saying he wouldn't be surprised to see minor pockets of outbreaks somewhere in the southern united states this summer. how likely do you think something like that is? >> we know from other related diseases carried by the same mosquitos, we are likely to see small numbers of cases in the continental united states. that's correct.
>> would we know about this because of testing, how thorough is the testing? or is this a situation we wouldn't know it's on our shores until women are born with babies impacted with microcely? >> that's a question question t.cdc is working with local health department to have adequate under surveillance. so we are monitoring case, potential cases and we are monitoring the situation to ensure we will know if there is local transmission of zika. >> what about a zika vaccine? >> well, researchers are working on a zika vaccine. there are some vaccines to other related viruses. so researchers have sort of a jump start on that. but it's still going to take time and in the meantime, it's important that pregnant women know how to protect themselves. >> dr. jamieson, i want to thank you very much for your time today. >> thank you. . now here's a look at america's economy is growing,
but slowly. the gross domestic product the size of the scope of the u.s. economy prime half a percent in the first quarter of the 84. that's its worst performance in two years. slow growth is not unusual in the, if. business investment was weak. the dow plunged more than 230.t. mark's worst decline since february. stocks continued to climb on friday. janet yellen did nothing at the meeting this week. the fed left interest rates unchanged. it plans to move cautiously because of concerns about the xi and low inflation. the fed next meeting is in june. comcast universe also is buying dreamworks. the police tag is $13.8 billion. nbc is the parent of the company that produces this program.
category. today the company is worth half a billion dollars. joining us sui jim weber, can chairman of gets things running. >> thanks for having me. >> it's a knoll idea. when you look at nike, under armour, companies all things the athletes. what made you focus just on running? >> we saw the opportunity to focus ours and running is the biggest category for all athletics in foot apparel. it becomes more than a sport. it becomes a fit ness health and wellness. we saw an opportunity to build a brand in the mild of the running lifestyle. >> how do you execute that strategy and market to it? >> runing is a repetitive activity, usually ones a fall so gear really matters. so we are way into creating performance products from head-to-toe. whether it be shoes or sports bras. the proof is at mile 26. >> 26.2.
>> it rally begins with products and checking with the power for people to nigh. >> how can it be a small fish in a big company and to have warren buffet somebody you can turn to or get a buzz president? >> you know, i can compare and contrast. we had four owners at brooks in the last 15 years him i have to say berkshire for us if billing a brand is the best platform you can ask for. i think warren buffet is truly a long-term investor. we are challenging and managing business well. we do. it's about building a brand over the next decade. we've always had that mindset. so it's a place to build our brand in a competitive category. berkshire is a fantastic category for brooks. that's how we experience it. we are operating as if we own the brand. >> it seems like it can be a tricky environment when you look at places like sports authority going out of business. how do you try and extend your
reach, you must be constantly evfling the situation. >> it is extremely dynamic right now. we thought about retail being a barbell for a period of time now. convenience and price and the internet is real, typically, in our category, shoes are selling over the internet. at the same time, it's a brick and mortar service. it's got service, community. the center of the run. a fun run, the like. so the middle is i think the toughest place to be. so if you are self service, there are some really good operators out there in sports gochltdz but go goods. the customer will go somewhere else. >> millennials are out reaping baby bombers. how do you reach them? >> 24% run for fitness are millennials 25-to-35. each generation comes into fitness and health and wellness,
they're busy, forming households, fit ness becomes a commitment. that when they typically find our brand. so we have to be lit you up digitally. that's where they r. we have a significant e-commerce division. the best thing is to be engaged digitally. >> is that the best market? >> we are still joining the company. so events and in store activities. we show up literally at 500 events in some way. but they're doing all the research, so we have to rekorea it this fast food fe until none. we are doing that today. >> thanks for joining us. >> if you flip through a mail order category, you might have bought them from oriental trading t. company began here in omaha 84 years ago. it wasn't until four years ago warren buffet required it. how the deal started. sam, thanks for being here this morning. >> thank you, becky. it's great to be here. >> about four years ago, you
guys were facing difficult times. how did warren buffet suddenly become interested in the company? >> i joined eight years ago, we went through the great recession,s refinanced the structure and ownership. the company is if recession and coming out. we have been very successful. our owners at the time decided to look to sell the company. we looked for a sale process. they didn't get the valuation they wanted to. now is when we need to talk to warren. warren doesn't get involved in auctions. the ceo at berkshire sent me an e-mail. the phone rang, it was warren. he said, tell me about the business. sends me over whatever financials you have. i'm get back to you soon him that was friday afternoon. tuesday he called back. yeah, we should talk. i'll be in town all week. we can be there in an hour. we're here in omaha, as well. my ceo. we had a two-hour meeting with
warren. at the end of two hours, he saidtial let's do the deal. >> were you surprised with the speed with which the deal transpired. >> a little surprised, but it lives up to everything i heard about warren. it was a my first time meeting him. he came exactly as billed. he was so smart the questions he asked. he is so intelligent but also so down to earth. definitely deprecating. he was funny. i said what about due diligence? we said, we don't feed due diligence, run it as we could. we'll close it quickly. it was easy as you imagine. >> you were on undercover boss two years ago. is there anything you learned? >> for me the lessson was the importance of community kachlgs i did four jobsch they were all in our warehouse. for me it was great to work side-by-side, get to know our employees better, see some of their frustration. along with great ideas, they were bubling up to the supervisors, smug u nothings with happening.
at least they didn't realize it. sometimes things were happening, they didn't receive feedback. after the show, i said here's a list of all the things we have implemented in the warehouse because of your suggestions and things changed immediately from there. >> you know, i get the oriental trading catalogue at home. i often flip through it. i just woirpd how do you break down sales these day, how much is coming from the catalogue and how much from your online component a lot of times i flip through the catalogue but i order online. is eight marking tool? >> absolutely the catalogues, we mail over 200 a year. we started the catalogue company. it's digital. ier-to-date so far almost 90% of our orders are coming online. 83% of our sales are coming online if i have to tell you, it's the catalogue that comes to remind me to go online. i heard people saying they are eliminating their cat lock. no, we will always have catalogue to print for us
because of our scale and we're able to print a mail catalogue cost effectively. we are shifting away from print and shifting to digital parking. >> thank you, sam. i want to thank you for your time. >> thank you. appreciate it. up next, we are on the money, is building a solid nestegg easier than you think? if you have warren if you have bet's advice, it could be simple. we'll give you the simple strategies that he follows next. next, medical marijuana has a new patience for your dogs. how vets are using pot for their fur babies. cathy's gotten used to the smell of lingering garbage...
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call or go online and switch to x1. only with xfinity. warren buffet is one of the greatest investors of all time. he did amass his fortune by complex trading strategies, instead, he used simple principles. some of which you are use yourself. joining us with how you can beure own buffet is sharon eperson. good to see you today. >> good to see you, too. >> when are you looking to buy stock, there are so many different strategies, so many different stocks you can by from. what is one way warren buffet narrows down his list? zplu talked to warren buffet. you know this all too well. easily never buy what you don't understand. boy companies that you know something about or you want to
learn a lot about. research specifically, the company and its leadership. how long that leadership will be there. that management will be there. stick with that company. by something that you want to stick with for a while. >> it's kind of like the peter lynch strategy, things can you see, things you can buy yourself is the way to go. >> absolutely. >> one of his well known principles is buy and hold. what does that mean? >> he believes in finding fairly priced stocks. stocks you believe based on their profits, based on their dividends, which is a portion of the profit that you can get for holding on to that stock. that's important. look at fairly priced stock. don't pay attention to the daily price fluctuations. you don't want to look at the stock price every day. again, this is a stock you will hold on to at least ten years or more. he believes it's important to make money by investment, not trading in and out of the stocks. >> what about when you should
buy a stock. did you get advice on that, too? >> definitely, there is advice on when to boy that stock. again, you have to think of what you are comfortable with. you want to make sure you always have money on hand to take advantage of opportunities. the thing that really trips up a lot of investors is the greed factor. or the fear factor. they're too scared to get into a stock or they're too greedy to get out within they need to. it's important you put your emotions if check. keep them in check. remember you are boying a stock you are comfortable with. and you intend to hold on to for a long time. >> you make it sound easy. as we know, anybody playing in the markets, it's never as easy as it looks. >> he makes it look so easy. following some of his mantras can be helpful to investors. >> great to see you. >> grit to see you, too. up next, a look at the money ahead and treating your pets with pots. we will talk about the highs and lows of this controversial treatment.
>> thursday marks the anniversary of al allen shepard, jr., to be the first american to go into space. we will see how many jobs are added to the economy when the unemployment report is released. as more and more states legalize medical marijuana, a new patient population is emerging, whether for pain, arthritis, anxiety, cannabis is now being offered to k-9s. off jane wells has more. >> i'm gigi griffin. >> gigi griffin is the last person you'd want to see at a medical marijuana disspenceary. she didn't come for herself. she came for joy. >> basically, joy was brought here in january for radiation of the bladder. >> a friend used medical marijuana to recover from cancer surge rid and recommended it. that's how she discovered the hottest new field in cannabis. >> here you go. we're going to squirt it in
there. >> pot for pets. >> yeah. >> that's a good boy. >> debra jansen has been giving her dog tyler a cannabis-based product to deal with arthritis. >> he starts swimming again, he's running in the park again. >> reporter: jake starting giving the same product to sunshine to stop her seizures. it worked. >> she's getting her whole meals when generally she's a very picky eater. >> there isn't a lot of research on the effect of cannabis on animals, which is one reason is spca or peta is prescribing support. to get a pet product like this you usually have to go somewhere, where they can sell it legally to humans. in california, that means you have to have your own card. some veterans feel at the least the products can't hurt, because they have low levels of thc to pre vent pets from getting high. >> we are using medical marijuana for very common ailness, pain, arthritis,
anxiety. these are common ailments we see in the veterinary clinics every day. >> look at her, she looks healthy. she eats well. she has a lot of energy. >> instead of spending thousands of dollars on chemo and radiation guygy griffin is spending about $100 bucks a month. >> what will they think of next? our thanks no jane wells. that is our show today. thank you for joining me. mother's day is next week. we will be looking at the best companies for mom. each week, keep it right here, we're on the money. have a great one. we will see you next weekend. what are you doing right now? making a cake! ayla reminds me of like a master chef and emiana reminds me of like a monster chef. uh oh. i don't see cake, i just see mess. it's like awful. it feels like i am not actually cleaning it up what's that make mommy do? (doorbell) what's that?
>> who were you expecting? we are live at the nasdaq markets. the greiss getting ready behind me. while they're doing that. this is what's coming up on "options action." yeah. that sums up apple this week. but if you own the stock, we'll tell you how you can get your money back with a simple trade. plus, wal-mart, always low prices. >> that certainly was the indicate today. they could be serving up a big warning to the world. we'll explain and -- >> i love gold. >> you are not alone,